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Partnership banks on US launch and DB deals to counter Budget blow

Partnership is hoping expansion into the US market will turn around its fortunes following the devastating impact of the Budget pension reforms, a trading update ahead of an investor meeting reveals.

The enhanced annuity provider says the launch of a new “care annuity” for the US is “progressing well”, while individual annuity sales are “well below 50 per cent” of pre-Budget levels.

It also says its pipeline of bulk annuity deals for the defined benefit pensions market are “strong and growing” but warns business will “remain lumpy”.

Partnership chief executive officer Steve Groves says: “In our presentation to investors and analysts this morning, we will be providing an update on the business and the various initiatives, which we are pursuing to diversify and grow the business, including our defined benefit proposition and the market opportunity for a care annuity in the US.

“Our discussions with potential US partners are progressing well and a reinsurance based market entry strategy has now been selected.”

The firm cut over 100 members of staff in the wake of the Budget and says it is on course to make £21m of savings, with the cost of the restructure to hit around £3m.

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